Hi,
Same problem here (Ubuntu 12.10, Empathy 3.6.0.3).
I have 2 Windows Live accounts configured, and they alternatively complain 
about "authorization needed".
Sometimes, only deactivate/reactivate account is sufficient, but most of time 
it needs to be deleted and re added.

I've noticed that most of time (but not only) the problem appears after
computer wake up from standby state.

Regards

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https://bugs.launchpad.net/bugs/1069882

Title:
  Windows Live Requires Authorization

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